Recent trends show that Dogecoin transaction volume is outpacing established cryptocurrencies like Bitcoin and Litecoin in terms of transaction volume.
Throughout much of May, the Bitcoin network has been bogged down with transactions of BRC-20 tokens. This novel token standard allows users to inscribe and transact text, audio, images, and even video on a single Satoshi (the smallest unit of a Bitcoin.)
This frenzy has now spread to the Dogecoin network with its own ‘DRC-20’ tokens.
Dogecoin Transactions Blast Off
Dogecoin developer Inevitable360 took to Twitter to point at the meme coin’s peak of around 628,000 transactions. This was compared to Bitcoin’s 575,000 transactions on May 13.
Commentators estimate that the increased minting of DRC-20 tokens was behind the rise in activity. The community has marketed DRC-20 tokens as a BTC-20 offshoot with comparable features.
Following the introduction of the BRC-20 token standard, Bitcoin Ordinals and Inscriptions filled up the mempool, causing transaction fees to skyrocket and sluggish transaction times. BeInCrypto previously revealed that members of the Litecoin community were working on implementing an LTC-20 standard on its blockchain as well.
Every Shibe (a singular DOGE unit) is serially numbered. These numbers are termed ‘cardinal numbers’ or ‘cardinals.’ Like Bitcoin’s BRC-20, Dogecoin will be able to leverage Cardinal theory to promote fungibility. According to Doge Labs, the standard would also address node operators’ difficulties with indexers. Shibes would get a distinctive identity, which would also eliminate block reward randomness.
What Should Doge Focus on?
According to another Twitter user, Dogecoin holdings have become concentrated. This means a small number of wallets with large holdings could be processing many transactions. Nevertheless, Dogecoin is advancing, and DRC-20 tokens are anticipated to support its widespread use.
Doge influencer SK_R402 noted that Doge should now focus on its use case of ‘people’s currency’ as its motivation to scale.
The commentator noted,
“Everyone should probably focus on the transactional currency use case. At least it’s a good test of the network’s ability to scale.”
Despite the increased activity, Dogecoin’s price has remained stagnant, much like the rest of the market for meme coins. According to CoinGecko data, the daily price range of Dogecoin (DOGE) is between $0.071 and $0.073, with a trading volume of over $271 million.
Dogecoin made minimal gains on May 15 but has lost more than 2% over the past week and about 18% over the past month. Additionally, Dogecoin is still 90% away from its all-time high price of $0.73, which it reached in 2021.
According to IntoTheBlock data, 49% of Dogecoin holders are ‘in the money’ at the current price levels. 3% of investors are breaking even, while 48% are at a loss.
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